Ok, I admit it. On Sunday afternoon, just before the game, I had one of those moments. I thought I had to write a blog post about Digital Marketing and why and how it works. Here are those thoughts:
I spoke about Inbound Marketing on my blog before. The idea of inbound marketing is that, particularly online, you as a company or individual make enough noise to be seen and getting interest. This interest is then converted into sales. I know that is over simplified, but that is basically it.
To do that, e.g. making enough noise, a lot of companies use Social Media these days. Twitter to form an opinion or to build a brand, maybe a Facebook page, some Facebook discussions, a group on LinkedIn or just a good blog that gets quoted within the industry. Speaking at events is usually welcomed, or sponsorship at events to associate a brand with a sport, e.g. Rolex and Golf as an example.
Now, there is another way of creating awareness. I recently, as you know, entered the online display arena with a company that executes media plans across ad exchanges. That means we can buy inventory more cost effective and get a greater reach for less money than using ad networks for instance. This brand performance can be used solely for branding or it could be used for branding in association with direct response to actually measure the ROI straight away, similar to search marketing.
Another way is to use TV of course. Maybe less targeted (until IPTV comes into play) and of course more expensive. However, the costs of producing a good display ad (creative) or TV advert might differ, but both shouldn’t be neglected.
To my mind, and thanks to Kotler, the 4Ps are still valid. Product, place, price, promotion. People buy because they know a product or a brand and they saw it in a place or associate it with a certain status. Then the price….that is tricky but general speaking if one really likes something, one will be able to afford it. So now, the promotion, is really what I am talking about.
Looking at a Digital Marketing Strategy, there are only a few ways to think, and these ways are 90% online and 10% offline (or all online) and to have the right mix between inbound and outbound Direct Response. What do I mean with that?
As a brand you need to create a lot of awareness. Brand performance is the newest word I use for that. To do that you can use a mixture of TV and Display Advertising with a measurable KPI, e.g. sign-ups or voucher code use. This way you don’t only spend money on a big brand reach and awareness campaign but you start from the beginning to focus on your ROI for every penny you spend.
User Engagement. Again: competition or user codes, discussions in forums or blogs, feedback and research rounds, social media like Facebook and Twitter. Having all that combined and using the feedback you are getting from your customers to improve your service and products is key.
The trick is to utilise the user engagement (2) and turn that into sales. Using DR (direct response) channels like Display (DR & brand awareness = brand performance), PPC (DR but also brand awareness), social media, and Email campaigns. That means you are turning your brand performance into DR and get a list of hot leads.
Use good sales people and close those hot leads. Using their feedback and good account management skills for client engagement to make sure clients are happy.
Feed all those information back into your system – CRM Software. That means you have a feedback loop and know exactly which channel worked best, where to spend more money, where to spend less money and which channel gives you the greatest ROI. Measuring, comparing, adjusting.
It sounds simple but there are a lot of things where brands do go wrong. And, don’t forget, not every user is the same, and not every brand either 😉
I am looking forward to hearing your thoughts on my Digital Marketing Ideas.